EUR/JPY breaches weekly R1

After trading sideways for a week or so, the pair received a strong bullish impetus from the 118.0/117.5 area and at the moment is hovering above a 122 yen mark, testing the Bollinger band. Daily technical indicators point at further appreciation of the Euro, which seems fairly reasonable, but quite a few weekly studies send sell signals, suggesting we might be up for a bearish correction, and probably not for a minor one.

Coming closer to the end of the trading week traders remain strongly bearish towards the pair—74% of market participants sold the Euro versus the Yen. Distribution of pending orders point at a completely different situation—64% of pending orders are to go long.